The new owner of WH Smith’s high street empire and the saviour of HMV are racing to salvage a future of Claire’s, the accessories retailer which slumped into administration last month, putting thousands of jobs at risk.
Sky News has learnt that Modella Capital, which is to rebrand hundreds of WH Smith shops under the name TG Jones, made an offer to buy Claire’s from administrators at Interpath in the last ten days.
Sources said that Doug Putman, whose Sunrise Records rescued HMV in 2019 and who failed in a bid to buy Wilko after its collapse four years later, had also tabled a bid.
This weekend, it was unclear which of the two were ahead in the battle to buy Claire’s, or whether any other parties were in discussions with Interpath.
The restructuring firm said in mid-August that it would continue to trade all 278 UK shops and 28 Irish stores while it assessed options for the business.
Roughly 2,150 people work across the business, making Claire’s one of the biggest high street chains to fall into insolvency this year.
Claire’s has been a fixture in British shopping centres and town centres for decades, and is particularly popular among teenage shoppers.
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It had been running a sale process prior to its appointment as administrators, but bidders including the turnaround specialist Hilco Capital walked away from the auction.
If Modella Capital does acquire Claire’s UK operations, it would underline its status as the most prolific new investor in British retailing.
It agreed to buy WH Smith’s 480 UK shops in the spring, ultimately chipping the purchase price by £12m to £40m.
Modella already owned The Original Factory Shop and Hobbycraft, and has been repeatedly linked with other high street assets.
Any buyer of Claire’s UK business would be likely to close scores of shops, according to insiders, with a core estate of roughly 100 outlets thought to be viable.
The retail industry has been left reeling by the employers’ national insurance hike announced by Rachel Reeves, the chancellor, last autumn.
Both Poundland and River Island recently survived creditor votes paving the way for them to slash rents and close dozens of stores.
The collapse of Claire’s UK operations came a week after its US parent company filed for Chapter 11 bankruptcy protection.
The company had been owned by former creditors Elliott Management and Monarch Alternative Capital following a previous financial restructuring.
It has since agreed to sell up to 950 of its US stores to Ames Watson, a private equity firm.
Will Wright, UK chief executive at Interpath, said last month: “Claire’s has long been a popular brand across the UK, known not only for its trend-led accessories but also as the go-to destination for ear piercing.
“Over the coming weeks, we will endeavour to continue to operate all stores as a going concern for as long as we can, while we assess options for the company.
“This includes exploring the possibility of a sale which would secure a future for this well-loved brand.”
This weekend, Interpath declined to comment on talks with prospective buyers, while Modella declined to comment and Mr Putman did not respond to an enquiry from Sky News.
